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Economics of Public Choice
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In this fully revised second edition of a popular text, Patrick McNutt presents more ideas and challenges to all those interested in political economy and public choice. Chapter 2 looks at the economic nature of contracts and reviews the "contractual form" by interpreting the Edgeworth-Bowley box from an economics of contracting perspective. Chapter 7 is updated and elaborates on the application of rent-seeking to antitrust and competition analysis. A new chapter 8 addresses the issue of legal barriers to entry and related issues, in particular how a legal barrier can affect consumer welfare. The discussion on the "anarchy of legitimacy" has been reviewed while a new chapter 11 critically evaluates the exchange and allocation of economic power and income inequality in developing countries. Finally, in a new chapter 12 the author presents an overview of the global political economy and identifies the contribution of public choice to the debate.
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